Confidentiality of tax-assessment statements bars compelled production in evidence unless the statute's express exception applies.

Statements and records made in assessment proceedings under the Punjab General Sales Tax Act are treated as confidential, and they cannot be compelled into evidence unless the matter falls within the statute's express exception for prosecution under the Indian Penal Code. The note distinguishes earlier authority involving licence-cancellation proceedings, treating it as outside the scope of the confidentiality provision. On that basis, the department was not required to produce the original statement, and the summons order was described as unsustainable.

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Issues: Whether the original statement made in assessment proceedings under the Punjab General Sales Tax Act could be summoned and produced in evidence in view of the confidentiality bar under section 26.

Analysis: Section 26 declares particulars contained in statements, returns, accounts, documents, and records of evidence given in proceedings under the Act to be confidential. The only stated exception applies where such material is required for prosecution under the Indian Penal Code. The statement sought in the present matter was admittedly made in assessment proceedings and did not fall within the statutory exception. The earlier decision relied upon by the lower appellate court was held inapplicable because it concerned cancellation of licence proceedings, which were outside the scope of section 26.

Conclusion: The department could not be required to produce the original statement, and the order permitting its summons was /unsustainable; the issue is decided in favour of the petitioner.

Ratio Decidendi: Where a taxing statute makes statements and records made in assessment proceedings confidential, they cannot be compelled to be produced in evidence unless the case falls within the statute's express exception.

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